CBAK Energy Technology, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>CBAK Energy Technology, Inc. has filed its quarterly report (10-Q) for the period ending March 31, 2024, confirming compliance with filing requirements.</b>

AI Summary

CBAK Energy Technology, Inc. (CBAT) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. CBAK Energy Technology, Inc. filed a 10-Q report for the quarterly period ended March 31, 2024. The company is registered in Nevada and its principal executive offices are located in Dalian, People's Republic of China. Common Stock of the company trades under the symbol CBAT on the Nasdaq Capital Market. CBAK Energy Technology, Inc. has submitted all required reports for the preceding 12 months and has been subject to filing requirements for the past 90 days. The company has submitted electronically every Interactive Data File required by Rule 405 of Regulation S-T during the preceding 12 months.

Why It Matters

For investors and stakeholders tracking CBAK Energy Technology, Inc., this filing contains several important signals. This filing provides an update on the company's financial and operational status for the first quarter of 2024, which is crucial for investors to assess performance and make informed decisions. As an accelerated filer and smaller reporting company, CBAK Energy Technology, Inc.'s adherence to SEC regulations and timely electronic data submission is a key indicator of its corporate governance and transparency.

Risk Assessment

Risk Level: low — CBAK Energy Technology, Inc. shows low risk based on this filing. The filing is a routine 10-Q report, indicating standard operational procedures and no immediate red flags, thus posing a low risk.

Analyst Insight

Monitor future 10-Q filings for detailed financial performance, revenue growth, and any strategic updates from CBAK Energy Technology, Inc.

Key Numbers

• 001-32898 — Commission File Number (SEC registration number)
• 88-0442833 — IRS Number (Company's IRS Employer Identification No.)

Key Players & Entities

• CBAK Energy Technology, Inc. (company) — Filer name
• CBAT (company) — Trading Symbol
• Nasdaq Capital Market (company) — Exchange where Common Stock is registered
• March 31, 2024 (date) — Quarterly period ended
• 20240514 (date) — Filing date
• Nevada (jurisdiction) — State of incorporation
• Dalian (location) — Address of principal executive offices

FAQ

Industry Context

CBAK Energy Technology, Inc. operates in the energy technology sector, likely focusing on battery production and related technologies.

Regulatory Implications

The company is subject to the reporting requirements of the Securities Exchange Act of 1934, including filing quarterly reports (10-Q) and adhering to SEC regulations.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements, including balance sheets, income statements, and cash flow statements.
2. Analyze management's discussion and analysis (MD&A) section for insights into the company's performance, risks, and future outlook.
3. Compare the financial results in this 10-Q with previous filings to identify trends and assess the company's growth trajectory.

Key Dates

• 2024-03-31: Quarterly period ended — End of the reporting period for the 10-Q filing.
• 2024-05-14: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the company's standard quarterly report, indicating continued compliance with its reporting obligations under the Securities Exchange Act of 1934.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value CBAT Nasdaq Capital Market

Filing Documents

• ea0205887-10q_cbak.htm (10-Q) — 1504KB
• ea020588701ex31-1_cbak.htm (EX-31.1) — 11KB
• ea020588701ex31-2_cbak.htm (EX-31.2) — 11KB
• ea020588701ex32-1_cbak.htm (EX-32.1) — 4KB
• ea020588701ex32-2_cbak.htm (EX-32.2) — 4KB
• image_001.jpg (GRAPHIC) — 4KB
• 0001213900-24-042923.txt (&nbsp;) — 12128KB
• cbat-20240331.xsd (EX-101.SCH) — 160KB
• cbat-20240331_cal.xml (EX-101.CAL) — 66KB
• cbat-20240331_def.xml (EX-101.DEF) — 597KB
• cbat-20240331_lab.xml (EX-101.LAB) — 1093KB
• cbat-20240331_pre.xml (EX-101.PRE) — 608KB
• ea0205887-10q_cbak_htm.xml (XML) — 1457KB

Financial Statements

Financial Statements. 1 Item 2.

Management's Discussion and Analysis of Financial

Management's Discussion and Analysis of Financial Condition and Results of Operations. 46 Item 3.

Quantitative and Qualitative Disclosures About Market

Quantitative and Qualitative Disclosures About Market Risk. 59 Item 4.

Controls and Procedures

Controls and Procedures. 59 PART II OTHER INFORMATION Item 1. Legal Proceedings. 61 Item 1A. Risk Factors. 61 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 61 Item 3. Defaults Upon Senior Securities. 61 Item 4. Mine Safety Disclosures. 61 Item 5. Other Information. 61 Item 6. Exhibits. 62 i PART I FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS CBAK ENERGY TECHNOLOGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTNS ENDED MARCH 31, 2023 AND 2024 CBAK ENERGY TECHNOLOGY, INC. AND SUBSIDIARIES TABLE OF CONTENTS Contents Page(s) Condensed Consolidated Balance Sheets as of December 31, 2023 and March 31, 2024 (unaudited) 2 Condensed Consolidated Statements of Operations and Comprehensive Income (loss) for the three months ended March 31, 2023 and 2024 (unaudited) 3 Condensed Consolidated Statements of Changes in Shareholders' Equity for the three months ended March 31, 2023 and 2024 (unaudited) 4 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2024 (unaudited) 5 Notes to the Condensed Consolidated Financial Statements (unaudited) 6 1 CBAK Energy Technology, Inc. and Subsidiaries Condensed consolidated Balance Sheets As of December 31, 2023 and March 31, 2024 (Unaudited) (In US$ except for number of shares) Note December 31, 2023 March 31, 2024 (Unaudited) Assets Current assets Cash and cash equivalents $ 4,643,267 $ 3,033,376 Pledged deposits 2 54,179,549 33,223,384 Short-term deposits 3 - 20,756,497 Trade and bills receivable, net 4 28,653,047 36,415,217 Inventories 5 33,413,422 28,260,340 Prepayments and other receivables 6 7,459,254 8,438,534 Receivables from a former subsidiary, net 18 74,946 35,947 Total current assets 128,423,485 130,163,295 Property, plant and equipment, net 7 91,628,832 88,961,277 Construction in progress 8 37,797,862 37,654,290 Long-term investments, net 9 2,565,005 2,502,537 Prepaid land use rights 10 11,712,704 11,433,966 Intangible assets, net 11 841,360 720,339 Deposit paid for acquisition of long-term investments 14 7,101,492 11,883,163 Operating lease right-of-use assets, net 1,084,520 3,140,214 Total assets $ 281,155,260 $ 286,459,081 Liab

financial statements

financial statements. 2 CBAK Energy Technology, Inc. and Subsidiaries Condensed consolidated Statements of Operations and Comprehensive Income (Loss) For the three months ended March 31, 2023 and 2024 (Unaudited) (In US$ except for number of shares) Three months ended March 31, Note 2023 2024 Net revenues 30 $ 42,396,701 $ 58,822,432 Cost of revenues ( 39,490,957 ) ( 40,041,385 ) Gross profit 2,905,744 18,781,047 Operating expenses: Research and development expenses ( 2,455,328 ) ( 2,815,518 ) Sales and marketing expenses ( 721,004 ) ( 1,724,032 ) General and administrative expenses ( 2,479,135 ) ( 4,092,527 ) (Provision for) recovery of doubtful accounts ( 131,167 ) 114,013 Total operating expenses ( 5,786,634 ) ( 8,518,064 ) Operating (loss) income ( 2,880,890 ) 10,262,983 Finance income, net 5,311 9,663 Other income, net 183,213 367,438 Share of loss of equity investee - ( 18,824 ) Changes in fair value of warrants liability 85,000 - (Loss) income before income tax ( 2,607,366 ) 10,621,260 Income tax credit (expenses) 21 402,884 ( 1,048,786 ) Net (loss) income ( 2,204,482 ) 9,572,474 Less: Net loss attributable to non-controlling interests 824,127 263,976 Net (loss) income attributable to shareholders of CBAK Energy Technology, Inc. $ ( 1,380,355 ) $ 9,836,450 Net (loss) income ( 2,204,482 ) 9,572,474 Other comprehensive income – Foreign currency translation adjustment 748,779 ( 1,906,048 ) Comprehensive (loss) income ( 1,455,703 ) 7,666,426 Less: Comprehensive loss attributable to non-controlling interests 730,021 274,223 Comprehensive (loss) income attributable to CBAK Energy Technology, Inc. $ ( 725,682 ) $ 7,940,649 (Loss) income per share 26 – Basic $ ( 0.02 ) $ 0.11 – Diluted $ ( 0.02 ) $ 0.11 Weighted average number of shares of common stock: 26 – Basic 89,013,359 89,925,024 – Diluted 89,013,359 90,12

financial statements

financial statements. 3 CBAK Energy Technology, Inc. and Subsidiaries Condensed consolidated Statements of Changes in Shareholders' Equity For the three months ended March 31, 2023 and 2024 (Unaudited) (In US$ except for number of shares) Common stock issued Additional Statutory Accumulated other Non- Treasury shares Total Number Donated paid-in reserves Accumulated comprehensive controlling Number shareholders' of shares Amount shares capital (Note 20) deficit Income (loss) interests of shares Amount equity Balance as of January 1, 2023 89,135,064 $ 89,135 $ 14,101,689 $ 246,240,998 $ 1,230,511 $ ( 131,946,705 ) $ ( 8,153,644 ) $ 6,883,123 ( 144,206 ) $ ( 4,066,610 ) $ 124,378,497 Net loss - - - - - ( 1,380,355 ) - ( 824,127 ) - - ( 2,204,482 ) Share-based compensation for employee and director stock awards - - - 4,897 - - - - - - 4,897 Common stock issued to employees for stock award 16,667 16 - ( 16 ) - - - - - - - Foreign currency translation adjustment - - - - - - 654,673 94,106 - - 748,779 Balance as of March 31, 2023 89,151,731 $ 89,151 $ 14,101,689 $ 246,245,879 $ 1,230,511 $ ( 133,327,060 ) $ ( 7,498,971 ) $ 6,153,102 ( 144,206 ) $ ( 4,066,610 ) $ 122,927,691 Balance as of January 1, 2024 90,063,396 $ 90,063 $ 14,101,689 $ 247,465,817 $ 1,230,511 $ ( 134,395,762 ) $ ( 11,601,403 ) $ 634,036 ( 144,206 ) $ ( 4,066,610 ) $ 113,458,341 Net income (loss) - - - - - 9,836,450 - ( 263,976 ) - - 9,572,474 Share-based compensation for employee and director stock awards - - - 116,582 - - - - - - 116,582 Foreign currency translation adjustment - - - - - - ( 1,895,801 ) ( 10,247 ) - - ( 1,906,048 ) Balance as of March 31, 2024 90,063,396 $ 90,063 $ 14,101,689 $ 247,582,399 $ 1,230,511 $ ( 124,559,312 ) $ ( 13,497,204 ) $ 359,813 ( 144,206 ) $ ( 4,066,610 ) $ 121,241,349 See accompanying

financial statements

financial statements. 4 CBAK Energy Technology, Inc. and subsidiaries Condensed consolidated statements of cash flows For the three months ended March 31, 2023 and 2024 (Unaudited) (In US$) Three months ended March 31, 2023 2024 Cash flows from operating activities Net (loss) income $ ( 2,204,482 ) 9,572,474 Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 2,185,763 2,231,605 Provision for (reversal of) doubtful accounts and bad debts written off 116,014 ( 116,248 ) Amortization of operating lease right-of-use assets 131,474 297,613 Write-down of inventories 979,633 538,883 Share-based compensation 4,897 116,582 Share of loss of equity investee 18,824 Changes in fair value of warrants liability ( 85,000 ) - Changes in operating assets and liabilities: Trade and bills receivable ( 601,557 ) ( 8,188,661 ) Inventories ( 2,025,827 ) 4,085,626 Prepayments and other receivables ( 312,927 ) ( 82,300 ) Trade and bills payable 9,917,436 ( 2,015,325 ) Accrued expenses and other payables and product warranty provisions ( 1,753,004 ) ( 460,200 ) Operating lease liabilities ( 158,824 ) 361,498 Trade receivable from and payables to a former subsidiary 3,729,807 37,966 Income tax payable - 1,048,832 Deferred tax assets ( 402,883 ) - Net cash provided by operating activities 9,520,520 7,447,169 Cash flows from investing activities Deposit paid for acquisition of long-term investment - ( 4,934,830 ) Purchases of property, plant and equipment and construction in progress ( 7,216,890 ) ( 7,901,180 ) Net cash used in investing activities ( 7,216,890 ) ( 12,836,010 ) Cash flows from financing activities Borrowings from banks 13,153,472 20,801,840 Repayment of bank borrowings ( 9,499,730 ) ( 16,700,355 ) Borrowings from a shareholder 199,942 - Repayment of borrowings to a shareholder ( 72,052 ) - Repayment of

financial statements

financial statements. 5 CBAK Energy Technology, Inc. and subsidiaries Notes to the condensed consolidated financial For the three months ended March 31, 2023 and 2024 (Unaudited) (In US$ except for number of shares) 1. Principal Activities, Basis of Presentation and Organization Principal Activities CBAK Energy Technology, Inc. (formerly known as China BAK Battery, Inc.) ("CBAK" or the "Company") is a corporation formed in the State of Nevada on October 4, 1999 as Medina Copy, Inc. The Company changed its name to Medina Coffee, Inc. on October 6, 1999 and subsequently changed its name to China BAK Battery, Inc. on February 14, 2005. CBAK and its subsidiaries (hereinafter, collectively referred to as the "Company") are principally engaged in the manufacture, commercialization and distribution of a wide variety of standard and customized lithium ion (known as "Li-ion" or "Li-ion cell") high power rechargeable batteries. Prior to the disposal of BAK International Limited ("BAK International") and its subsidiaries (see below), the batteries produced by the Company were for use in cellular telephones, as well as various other portable electronic applications, including high-power handset telephones, laptop computers, power tools, digital cameras, video camcorders, MP3 players, electric bicycles, hybrid/electric vehicles, and general industrial applications. After the disposal of BAK International and its subsidiaries on June 30, 2014, the Company will focus on the manufacture, commercialization and distribution of high power lithium ion rechargeable batteries for use in cordless power tools, light electric vehicles, hybrid electric vehicles, electric cars, electric busses, uninterruptable power supplies and other high power applications. The shares of the Company traded in the over-the-counter market through the Over-the-Counter Bulletin Board from 2005 until May 31, 2006, when the Company obtained approval to list its common stock on The NASDAQ

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View this 10-Q filing on SEC EDGAR